December 18, 2019 / 7:57 AM / 2 months ago

China stocks snap 3-day winning streak amid trade deal caution

* Blue-chips fall 0.2%, knocked off 8-month high

* Shanghai shares off the highest level since Sept.

* Trump adviser insists deal ‘done’ as China sounds caution

* PBOC trims repo rate; state planner rules out big infra spending

HONG KONG, Dec 18 (Reuters) - China shares ended a three-session rally on Tuesday as investors sought concrete details on the initial trade deal between Beijing and Washington.

** The Shanghai Composite index closed 0.2% lower at 3,017.04, off the three-month high hit on Tuesday. The blue-chip CSI300 index also fell 0.2%, moving away from the highest level since April hit in the previous session. ** CSI300’s financial sector sub-index was flat, the consumer staples sector ticked down 0.3%, while the real estate index fell 0.5%. ** The smaller Shenzhen index was flat, while the start-up board ChiNext Composite index slid 0.5%. ** The so-called “phase-one” trade deal between the United States and China has been “absolutely completed,” a top White House adviser said on Monday, adding that U.S. exports to China will double under the agreement. ** Larry Kudlow’s remarks came after Chinese officials emphasized that the trade dispute has not been completely settled. ** The Trump administration is finalising a set of narrow rules to limit exports of sophisticated technology to adversaries such as China, according to a document seen by Reuters. ** China’s central bank on Wednesday lowered the interest rate on 14-day reverse repurchase agreements by five basis points, having unexpectedly trimmed the seven-day benchmark last month for the first time in more than four years. ** China will take a targeted approach to boosting investment and will not resort to massive stimulus in its infrastructure push, the state planner said on Tuesday, as Beijing ramps up support to stabilise its slowing economy. ** Beyond this week, however, equities will be shored by expectations of policy support, foreign investment inflows and progress in the trade talks, Greater Wall Securities’ analysts wrote in a note on Wednesday. ** Around the region, MSCI’s Asia ex-Japan stock index was pretty much flat, while Japan’s Nikkei index fell 0.6%. ** So far this year, the Shanghai stock index is up 20.98%. Shanghai stocks have risen over 5% this month. ** About 24.41 billion shares have traded so far on the Shanghai exchange. The volume traded was 29.30 billion as of the last full trading day. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)

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